§ 112.01  FINDINGS OF CITY COUNCIL.
   (A)   Studies conducted by the Minnesota Attorney General, the American Planning Association and cities such as St. Paul, Minnesota; Indianapolis; Alexandria, Minnesota; Rochester, Minnesota; Phoenix, Arizona; Los Angeles, California; Seattle, Washington; have studied the impacts that adult establishments have in those communities. These studies have concluded that adult establishments have an adverse impact on the surrounding neighborhoods. Those impacts include increased crime rates, lower property values, increased transiency, neighborhood blight and potential health risks. Based on these studies and findings, the City Council concludes:
      (1)   Adult establishments have adverse secondary impacts of the types set forth above;
      (2)   The adverse impacts caused by adult establishments tend to diminish if adult establishments are governed by locational requirements, licensing requirements and health requirements;
      (3)   It is not the intent of the City Council to prohibit adult establishments from having a reasonable opportunity to locate in the city;
      (4)   M.S. § 462.357, as amended from time to time, allows the city to adopt regulations to promote the public health, safety, morals and general welfare; and
      (5)   The public health, safety, morals and general welfare will be promoted by the city adopting regulations governing adult establishments.
   (B)   The City Council makes the following findings regarding the need to license sexually-oriented businesses. The findings are based upon the experiences of other cities where the businesses have located, as studied by city staff.
      (1)   Sexually-oriented businesses can contribute to an increase in criminal activity in the area in which the businesses are located, taxing city crime-prevention programs and law enforcement services.
      (2)   Sexually-oriented businesses can be used as fronts for prostitution and other criminal activity. The experience of other cities indicates that the proper management and operation of the businesses can, however, minimize this risk; provided, the owners and operators of the facilities are regulated by licensing or other procedures.
      (3)   Sexually-oriented businesses can increase the risk of exposure to communicable diseases including, but not limited to, Acquired Immune Deficiency Syndrome (AIDS) for which currently there is no cure. Experiences of other cities indicate that the businesses can facilitate the spread of communicable diseases by virtue of the design and use of the premises, thereby endangering not only the patrons of the establishments but also the general public.
      (4)   Sexually-oriented businesses can cause or contribute to public health problems by the presence of live adult entertainment in conjunction with food and/or drink on the same premises.
      (5)   The risk of criminal activity and/or public health problems can be minimized through a licensing and regulatory scheme as prescribed herein.
(Ord. 246, passed 11-7-2001)